Ergonomics Supply Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 27,000 shares of preferred 2% stock, $100 par, and 600,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations: July 1. Issued 213,000 shares of common stock at par for cash. 1. Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. Aug. 7. Issued 69,400 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $149,100, $505,120 and $164,700 respectively. Sept. 20. Issued 17,600 shares of preferred stock at $105 for cash. Required: Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries, CNOW journals will automatically indent a credit entry when a credit
Ergonomics Supply Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 27,000 shares of preferred 2% stock, $100 par, and 600,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations: July 1. Issued 213,000 shares of common stock at par for cash. 1. Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. Aug. 7. Issued 69,400 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $149,100, $505,120 and $164,700 respectively. Sept. 20. Issued 17,600 shares of preferred stock at $105 for cash. Required: Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries, CNOW journals will automatically indent a credit entry when a credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:Ergonomics Supply Inc., a wholesaler of office products, was organized on July 1 of the current year, with an authorization of 27,000 shares of preferred 2% stock,
$100 par, and 600,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations:
July
1.
Issued 213,000 shares of common stock at par for cash.
1.
Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the
corporation.
Aug.
Issued 69,400 shares of common stock in exchange for land, buildings, and equipment with fair market
7.
prices of $149,100, S505,120 and $164,700 respectively.
Sept.
20.
Issued 17,600 shares of preferred stock at $105 for cash.
Required:
Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal
explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit
amount is entered,

Transcribed Image Text:CHART OF ACCOUNTS
Ergonomics Supply Inc.
Geņeral Ledger
ASSETS
REVENUE
110 Cash
410 Sales
120 Accounts Receivable
610 Interest Revenue
131 Notes Receivable
EXPENSES
132 Interest Receivable
510 Cost of Merchandise Sold
141 Merchandise Inventory
515 Credit OCard Expense
145 Office Supplies
520 Salaries Expense
151 Prepaid Insurance
531 Advertising Expense
181 Land
532 Delivery Expense
191 Buildings
533 Selling Expenses
192 Accumulated Depreciation-Buildings
534 Rent Expense
193 Equipment
535 Insurance Expense
194 Accumulated Depreciation-Equipment
536 Office Supplies Expense
537 Organizational Expenses
LIABILITIES
561 Depreciation Expense-Buildings
210 Accounts Payable
Previous
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